Asia leads decarbonisation push to build green hydrogen economy
THE race to net-zero is on, and green hydrogen is emerging as a game-changer. More than just a cleaner fuel, it enhances energy security, resilience and carbon reduction. In Asia, where energy demand is rising rapidly, scalable low-carbon solutions are essential. With a strong track record in renewables, Sembcorp is driving this transition to a cleaner, more sustainable future for the region.
Powering the future of energy and industry
Green hydrogen is reshaping industries and redefining energy systems. From powering factories and refuelling transport to decarbonising hard-to-abate sectors, its potential is immense. Green ammonia, a key hydrogen carrier and energy storage solution, is also gaining traction.
While large-scale adoption is still in its early stages, governments are rolling out incentives, supportive policies and infrastructure investments to accelerate adoption and integration. The market is responding with confidence – global investments in green hydrogen and ammonia projects surpassed US$680 billion in 2024, with over 1,500 projects announced globally.
With strong public and private sector backing, these innovations are transforming energy systems and advancing the global transition towards sustainability.
Spearheading the global hydrogen transition
Asia is emerging as a global leader in the hydrogen space, leveraging its abundant renewable resources, progressive policies and strong momentum in project execution to drive the clean-energy transition. Nations like India, Singapore, Japan and China are making significant strides, accelerating the region's potential to become epicentres of the global green hydrogen economy.
For instance, India's National Green Hydrogen Mission offers a 25-year waiver on interstate electricity transmission charges for green hydrogen and ammonia projects commissioned before Dec 31, 2030. The initiative also provides capital support for electrolyser manufacturing and green hydrogen production, while establishing hydrogen export hubs. With a target to produce five million metric tonnes per annum of green hydrogen by 2030, India is well-placed to harness its abundant natural resources and grow its renewable energy capacity to drive large-scale hydrogen production.
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Singapore is also aiming for green hydrogen to supply half its power needs by 2050. Its National Hydrogen Strategy strengthens energy security, and the injection of another S$5 billion into the Future Energy Fund will further support the development of infrastructure and emerging technologies.
Japan has launched a 'Contracts for Difference' scheme, which bridges the price gap between hydrogen and fossil fuels, accelerating industrial adoption. The country plans to invest 15 trillion yen (S$134 billion) over 15 years to scale production and infrastructure.
China is leading in hydrogen innovation and project execution, leveraging state-driven policies and funding to accelerate market growth and technological advancements. Its industrial ecosystem and commitment to clean energy place it at the forefront of the hydrogen revolution.
Despite the positive momentum, challenges remain. Infrastructure gaps, competing technologies and the need for improved electrolyser efficiency and storage solutions must be addressed. Scaling green hydrogen requires cost reductions in production, storage and transport. Strategic partnerships such as take-or-pay contracts with suppliers and off-takers can mitigate risks and attract investments. With strong government support and the right market mechanisms, green hydrogen will be a transformative force in clean energy.
Sembcorp: Advancing energy transition through green hydrogen
Sembcorp's strong renewables capabilities in key geographical regions give us a credible 'right to play' in the green hydrogen space. Our strong presence in supply and demand centres supports large-scale, cost-effective green hydrogen production and offtake.
In India, we harness our wind and solar capabilities to develop competitive green hydrogen and green ammonia projects. Through collaborations with the Tamil Nadu and Odisha governments, we are exploring the development of green hydrogen and ammonia production facilities to support India's decarbonisation goals. We have commenced front-end engineering and design work for our green ammonia plant in Tuticorin, reflecting our commitment to establish Tamil Nadu as a global hub for green hydrogen production. Additionally, we are collaborating with Sojitz, Kyushu Electric and NYK for large-scale green ammonia production in India for export to Japan, reinforcing our role in facilitating cross-border clean-energy trade.
In the Middle East, we are looking to grow our renewables portfolio, which can potentially be used for future green hydrogen production. Our expertise in renewable energy positions us to enable large-scale green hydrogen production and export.
As one of Singapore's largest importers and retailers of natural gas, we have access to diversified low-carbon feedstocks and can facilitate alternative fuel imports and hydrogen blending with natural gas. This positions us to support industries in transitioning to cleaner energy sources while maintaining power reliability. Through long-term contracts, we provide customers with scalable decarbonisation solutions and supply security, ensuring a stable and sustainable energy transition.
To prepare for the hydrogen economy, we are building Singapore's first 600MW hydrogen-ready combined cycle power plant, equipped with Mitsubishi's advanced J Series gas turbines, set for operation by 2026. We are also exploring the retrofitting of our existing power plant with ammonia-firing capabilities through partnerships with GE Vernova and IHI.
To advance Singapore's National Hydrogen Strategy and accelerate the adoption of low-carbon ammonia as a viable fuel, we have been shortlisted by the Energy Market Authority and the Maritime and Port Authority to develop a low- or zero-carbon ammonia solution for power generation and bunkering on Jurong Island. This will support Singapore's goal of achieving net-zero emissions by 2050, reinforcing its position as a leader in hydrogen technologies.
Beyond Singapore, we are exploring hydrogen pipeline imports from neighbouring countries to secure a stable and sustainable supply of green hydrogen. These efforts are crucial to meeting the region's growing energy needs and accelerating hydrogen adoption.
In South-east Asia, we strengthened our green feedstock production by partnering with PLN Energi Primer Indonesia (PLN EPI) to develop the region's largest green hydrogen production facility in Sumatra, Indonesia, with an annual capacity of 100,000 metric tonnes. Additionally, in collaboration with PLN EPI and Transportasi Gas Indonesia, we are exploring the development of a hydrogen transportation pipeline linking Sumatra, the Riau Islands and Singapore, facilitating the creation of a regional hydrogen hub.
Unlocking the full potential of green hydrogen and ammonia
Undeniably, green hydrogen and ammonia offer a cleaner and more sustainable alternative to fossil fuels. Asia's proactive approach, driven by policy support, expanding infrastructure and vast renewable energy potential, is shaping a thriving hydrogen economy.
The writer is CEO of Hydrogen Business in Sembcorp Industries
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